Common use of Filing Status Clause in Contracts

Filing Status. The Global Assignee is expected to use the filing status that produces the lowest possible tax cost to the Company, as determined by the tax advisor. If another filing status is elected, the Global Assignee will be responsible for any additional tax generated. The tax advisor will determine whether state and/or local filing requirements exist. As the Global Assignee is responsible for a state hypothetical tax, any actual taxes resulting from the need to file a state and/or local return will be paid by the Company. Should the Global Assignee elect to file a state tax return against the recommendation of the tax advisor or be unable to break residency for purely personal reasons, the Company will not protect the Global Assignee against any state or local tax in excess of the hypothetical tax incurred due to assignment related income. Penalties and interest attributable to Company related matters for which Global Assignees are not at fault will be paid by the Company. Global Assignees will pay any penalties and interest only if they are responsible. For example, a Global Assignee may be required to provide the tax advisor with an estimate of net personal income in order to evaluate the need for estimated tax payments or actual withholding. If the estimate proves to be understated and results in penalties and interest, the Global Assignee will be responsible for these costs. In addition, a Global Assignee who does not provide the tax advisor with complete and timely tax data will also be responsible for any late payment penalties, interest and increased tax advisor fees. Back to Contents

Filing Status. The Global Assignee is expected to use the filing status that produces the lowest possible tax cost to the Company, as determined by the tax advisor. If another filing status is elected, the Global Assignee will be responsible for any additional tax generated. The tax advisor will determine whether state and/or local filing requirements exist. As the Global Assignee is responsible for a state hypothetical tax, any actual taxes resulting from the need to file a state and/or local return will be paid by the Company. Should the Global Assignee elect to file a state tax return against the recommendation of the tax advisor or be unable to break residency for purely personal reasons, the Company will not protect the Global Assignee against any state or local tax in excess of the hypothetical tax incurred due to assignment related income. Penalties and interest attributable to Company related matters for which Global Assignees are not at fault will be paid by the Company. Global Assignees will pay any penalties and interest only if they are responsible. For example, a Global Assignee may be required to provide the tax advisor with an estimate of net personal income in order to evaluate the need for estimated tax payments or actual withholding. If the estimate proves to be understated and results in penalties and interest, the Global Assignee will be responsible for these costs. In addition, a Global Assignee who does not provide the tax advisor with complete and timely tax data will also be responsible for any late payment penalties, interest and increased tax advisor fees. Back to Contents.